DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

December 22, 2017

MEMORANDUM FOR SUPPLY AND SUPPLY DISCREPANCY REPORT (SDR) PROCESS 

REVIEW COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 

1249, Revised Procedures for Directed Return of Discrepant/ Deficient Materiel 

including New Document Number Assignment for Return Shipment

(SDR/MILSTRIP/MILSTRAP/Supply)

We are forwarding the attached approved change to DLM 4000.25, Defense Logistics 

Management Standards, for implementation. Components must implement this change for DLMS 

compliance; refer to the implementation target timeline in the attachment for details. The 

Enterprise Business Standards Office (EBSO) will post updated DLMS Implementation 

Conventions (IC to the Defense Logistics Management Standards Program Office Web at 

http://www.dla.mil/HQ/InformationOperations/DLMS/elibrary/Transformats/140_997/, within 10 

days from the above date.

Addressees may direct questions to Mr. Ben Breen or Ms. Ellen Hilert, at email: 

DLMSSupply@dla.mil (use DLMSSDR@dla.mil for SDR-related questions). All others must 

contact their Component designated Supply PRC representative or SDR PRC representative 

available at: http://www.dla.mil/HQ/InformationOperations/DLMS/committees/. 

 

HEIDI M. DAVEREDE

Program Manager 

Enterprise Business Standards Office

Attachment

As stated

cc: 

ODASD (SCI)

DOD PQDR Committee
Attachment, ADC 1249

Page 1

Attachment to ADC 1249

Revised Procedures for Directed Return of Discrepant/ Deficient Materiel 

including New Document Number Assignment for Return Shipment

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Ellen Hilert, DOD SDR System Administrator, Enterprise Business Standards Office 

(EBSO), email: DLMSSDR@dla.mil

b. Ben Breen, DOD SDR Alternate, EBSO, email: DLMSSDR@dla.mil

2. FUNCTIONAL AREA:

a. Primary Functional Area: Returns/Supply Discrepancy Reporting (SDR); PrePositioned Materiel Receipt (PMR)

b. Secondary Functional Process: Ship-in-Place Procedures, Product Quality 

Deficiency Report (PQDR), Transportation Discrepancy Report (TDR)

3. REFERENCES:

a. Defense Logistics Manual (DLM) 4000.25, Defense Logistics Management Standards 

(DLMS), Volume 2, Chapter 17, Supply Discrepancy Reporting, and Chapter 24, Product 

Quality Deficiency Report Program

b. DLA Memorandum Procedures for Receipt of Product Quality Deficiency Report 

(PQDR) Exhibits, October 20, 2017

c. Approved DLMS Change (ADC) 353A, Procedures for Pre-Positioned Materiel 

Receipt (PMR) and Shipment Status for Retrograde and Directed Discrepant/Deficient Materiel 

Returns Including Corrected Time Standard for Security Assistance/Foreign Military Sales 

(SA/FMS), August 25, 2010

d. ADC 128, Revised SDR Transaction Exchange (Formats, Codes, and Unique Item 

Identification (UID)), August 16, 2004

e. ADC 1091, Supply Discrepancy Reports (SDRs) Requesting Replacement or 

Expedited Shipment, January 28, 2014

4. APPROVED CHANGE(S): Green highlighting identifies substantive changes subsequent 

to staffing.

a. Brief Overview of Change:

(1) This change revises business rules for document number assignment for 

directed return of materiel stored in DLA Distribution Centers. Current procedures state that the 

original owner/manager providing SDR disposition for return of discrepant materiel must direct 

the customer to use the original shipment document number. DLMS guidance for Product 

Quality Deficiency Report (PQDR) and Transportation Discrepancy Reports (TDR) returns is 
Attachment, ADC 1249

Page 2

more flexible, but supports the option for reuse of the original document number. While this 

reuse may be appropriate for some materiel held at the customer’s location, it is not feasible for 

all situations. When the materiel is already located in a DLA Distribution Center and no 

physical shipment is required to return the materiel to the original owner/manager, the current 

owner must not reuse (or suffix) the original document number for the Prepositioned Materiel 

Receipt (PMR) and Materiel Release Order (MRO) directing the return. This is because the 

DLA Distribution Standard System (DSS) overlays PMR quantity due-in for a matching 

document number suffix while retaining the original quantity received resulting in misleading 

information. Owner/manager must use a different unique document number for the PMR and 

resulting ship-in-place process so this action will be distinct from the original shipment and 

receipt. 

(2) An existing DLMS enhancement to the PMR and the materiel returns

shipment status supports inclusion of a cross-reference document number when materiel must be 

returned on a document number other than the original requisition/shipment document number. 

This change builds on these enhancements by perpetuating the cross-reference document number 

to the receipt, thereby completing the transactional audit trail. It further clarifies the intent for 

the returning activity and the owner/manager to maintain visibility of the associated document 

numbers. 

(3) In addition to clarifying and harmonizing procedures for directing return

within DLMS guidance, this change revises requirements for SDR systems to implement data 

fields for the “directed return document number/suffix” and “return by date” on applicable SDR 

replies. 

b. Background:

(1) The primary goal of ADC 1249 is to require managers to assign new 

document numbers for directed returns of materiel already located in a DLA Distribution Center

where no physical movement of the materiel is required. This change does not address recent 

DLA-directed procedures for return and receipt of PQDR exhibits using a DLA-provided bar 

code label as described in Reference 3.b. Under the DLA procedures, the DLA item manager

directs return of PQDR exhibits using the original requisition document number. DLA creates a 

PMR and provides the bar code label also using the original requisition document number. If the 

customer returning the materiel substitutes a different document number due to internal Service 

system constraints preventing compliance with the item manager’s instructions, the DLA 

Distribution Center will disregard the customer’s document number on shipping documentation 

(even when it matches a customer-provided PMR). Instead, the distribution center will use the 

DLA bar code label document number to record the receipt into the DLA account. The DLA 

procedures are a work-around designed to circumvent customer system constraints that do not 

allow directed returns using the original requisition document number or a new item manager 

assigned document number. Failure to return materiel on the assigned document number causes 

DLA to lose visibility of the materiel resulting in manual research and can cause significant 

delays in the investigation of reported deficiencies and issuing of credit to the customer. When 

the distribution center receipts the exhibit to the returning Service’s ownership, the Service may 

not recognize the situation and issue the materiel to DLA Disposition Services or redistribute it 

within the Service. Services identifying system constraints preventing accomplishment of DOD 

standard return procedures under the original document number (as reported by Army and 

Marine Corps personnel) must take corrective action to comply. Since EBSO anticipates that the 
Attachment, ADC 1249

Page 3

Services will not be able to complete corrective action in the near term, EBSO asked DLA to 

formally document the interim procedures by DLMS change. 

(2) Ship-in-place (also known as ship-to-self) terminology applies when a

materiel owner sends a MRO to a storage activity solely to release/issue materiel to a new owner 

without physically moving the materiel. The system processing the MRO will recognize that no 

actual shipment is required by the process-specific format (i.e., the ship-to DoDAAC 

corresponds to the current location) and the materiel will remain in its current storage location. 

The storage activity will confirm the MRO and report the receipt to the new owner. The storage 

activity may or may not generate Shipment Status dependent upon the system used by the 

storage activity. 

(3) ADC 353A (Reference 3.b.) revised procedures for directed return of

discrepant/deficient materiel. ADC 353A established a second document number data field in 

the PMR and returns shipment status to serve as a cross-reference when the document number 

for the return differs from that on the original order/shipment. For supply discrepancies, it 

required the SDR reply to indicate the number of days allowed for the customer to return the 

materiel to a designated location. The ADC provided guidance for identification of the returnto/ship-to location identified by DoDAAC or Commercial and Government Entity (CAGE) Code 

(for contractors with no assigned DoDAAC). These procedures support the use of clear-text 

addresses in addition to the activity code. The ADC specified that the activity directing the 

return is responsible for establishing a due-in and transmitting a PMR transaction to the receiving 

activity. Refer to ADC 353A for additional details.

Staffing note: Although ADC 353A did not perpetuate the cross-reference document number to 

the receipt transaction, EBSO identified this as a potential gap. Accordingly, this ADC updates 

the DLMS 527R to carry the cross-reference document number from the PMR, thereby 

completing the audit trail. 

(4) For return of supply discrepant materiel, ADC 353A appended procedures to

pre-existing SDR guidance requiring use of the original document number to return discrepant 

materiel. This resulted in inconsistent guidance because the intent of the ADC was to allow 

alternative document numbers while recognizing that “many logistics business rules require that 

the return use the same document number as the related order/sale.” This change removes the 

statement mandating reuse of the original document number for SDR returns and adds guidance 

for ship-in-place returns to DLMS procedures for all types of directed returns. 

(5) Prior to developing this proposal, the DLA DSS team tested a duplicate PMR

document number to verify the effect. When DSS receives a duplicate document number, the 

system overlays the data if there is any current data on the PMR. If a Receipt was processed, 

DSS updates that quantity. If DSS had Document Number A with quantity 10 and receipted 10 

and a new PMR came in for the same Document Number A for a quantity of 10, then the PMR in 

DSS would not look any different. The receiver would match the PMR, but there would be no 

PMR quantity available to receive, since DSS thinks it already received the entire PMR quantity. 

If DSS had a Document Number A with quantity 15 and receipted 10 and a new PMR came in 

with the same Document Number A for a quantity of 8, then the PMR in DSS would have a 

PMR quantity of 8 and a receipted quantity of 10. Again, when receipted, there would be no 

PMR quantity available but the data would display to the receiver. In DSS receiving, the system

overlays any new PMR with the matching document number. If the document number has a 

suffix, the DSS receiving system will generate a new record. When DSS overwrites the record, 

DSS reads the Receipt History for any matching receipted materiel and updates the quantity 
Attachment, ADC 1249

Page 4

received on the PMR with that total quantity. When that materiel is receipted, the PMR data is 

displayed but with no PMR quantity available. The Receipt can be processed, but the PMR 

looks odd when more quantity is receipted than due in.

(6) The SDR Implementation Team reviewed alternative approaches for mapping 

the number of days allowed for the different actions (including return of discrepant materiel)

directed by the SDR reply in conjunction with specific SDR reply codes. ADC 128 (Reference 

3.c.) used one approach (originally intended for use with Reply Code 114 and 117) and ADC 

353A used another (specifically for Reply Codes 105, 106, 107, 108). The Components 

confirmed they have not implemented either approach in their Component SDR systems. The 

Defense Automatic Addressing System (DAAS) and team members recommended simplifying 

the pending implementation by aligning all current and potential requirements to a single 

methodology and suspense date.

c. Approved Change in Detail:

(1) Update materiel returns guidance for consistency regarding use of alternative

document numbers assigned by the activity directing the return. This includes a new 

requirement to use of a new document number for directed return of materiel stored in a DLA 

Distribution Center where the directed return will require the current owner to use a MRO for 

ship-in-place processing to accomplish the ownership transfer. 

(2) When using a new document number for the directed return of 

discrepant/deficient materiel, the source of supply/manager must retain an audit trail linking the 

original and new document number/suffix. The returning customer must also recognize and 

retain visibility of the relationship. A DLMS enhancement provides transactional visibility of 

this requirement and this ADC updates the associated DLMS notes to emphasize and broaden 

planned use. The DLMS enhancements to the DLMS 527D Prepositioned Materiel Receipt 

(PMR) and DLMS 856R Shipment Status Materiel Returns identify the original order/shipment 

document number when the return is associated with a different document number. A new 

requirement identifies inclusion of the cross-reference document number in the DLMS 527R 

Receipt. 

(3) Update the DLMS 842A/R SDR Reply Implementation Convention (IC) to 

support discrete identification of a suffix code when one is associated with the return document 

number or replacement shipment document number. Use standard mapping for identification of 

the suffix code in the Reference (REF) Segment.

(4) Update the DLMS 842A/R SDR Reply IC to remove duplicate methods for 

establishing a suspense for a directed return of materiel or documentation by the SDR submitter. 

Consolidate procedures for establishing a suspense using the Date (DTM) Segment to provide a 

suspense date rather than the number of days allowed for the directed action. System edits must 

ensure action activity includes the suspense date when using the following reply codes:

105 Forward materiel received to location identified. Must use traceable and most 

economical means available.

106 Forward materiel received to contractor location identified (must use traceable and 

most economical means available).

107 Forward materiel to address shown for inspection/exhibit analysis (must use traceable 

and most economical means available).
Attachment, ADC 1249

Page 5

108 Forward materiel to contractor address shown for inspection/exhibit analysis (must use 

traceable and most economical means available).

114 Provide disposal documentation by date indicated as requested. Credit will be 

authorized upon receipt.

115 Turn in materiel received to DLA Disposition Services Field Office.

116 Turn in hazardous materiel received to DLA Disposition Services Field Office (MIPR 

or bill-to DoDAAC provided to cover disposal costs).

117 Materiel will be billed if not returned by date indicated.

(5) Component SDR applications must implement discrete data fields for 

identification of the return document number/suffix, suspense date, and return-to/ship to location 

(DoDAAC/CAGE/clear text address (data fields for use with CAGE)). SDR applications must 

edit for inclusion of return-to location when SDR Reply Code 105, 106, 107, or 108 applies. 

SDR applications must edit for inclusion of the return document number when SDR Reply Code

105 or 107 applies. Pending full implementation by receiving SDR applications, action activities 

must repeat return instructions in the SDR remarks to ensure this information is not lost during 

processing. 

d. Revisions to DLM 4000.25 Manuals:

(1) Revise DLM 4000.25, Volume 2, Chapter 11, and Chapter 17, Supply 

Discrepancy Reporting, as shown in Enclosure 1.

(2) Revise DLM 4000.25, Volume 2, Appendix 7.28, Supply Discrepancy Report 

Relevant Data Elements, for correct spelling of “materiel” in reply code explanations as shown 

in paragraph 4.c.(3) above.

(3) Update DLMS 527D, DLMS 527R, and 842A/R as shown in Enclosure 2.

e. Transaction Flow: Standard transaction flows apply. 

f. Alternatives: None identified.

5. REASON FOR CHANGES:

a. Corrects and clarifies procedures for document number assignment for directed 

returns. 

b. Simplifies SDR requirements for establishing a suspense date associated with directed 

actions.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: 

(1) This change establishes consistent, accurate guidance using discrete data 

fields in SDR transactions.
Attachment, ADC 1249

Page 6

(2) Use of the discrete data field for the original order/shipment document 

number on the PMR, returns shipment status, and receipt will ensure visibility is maintained

when returning discrepant/deficient materiel.

(3) The revised guidance simplifies implementation for the SDR directed return 

suspense date. Inclusion of the suspense date in the SDR reply will ensure customer visibility of 

the applicable time standard and provides a mechanism for directing an expedited return when 

needed.

(4) Use of discrete data in SDR transactions provides better visibility and access 

to return information. It will allow system edits to ensure the action activity populates this type 

of information based upon selected reply codes.

(5) Use of discrete data elements for returns information frees up space in the 

SDR reply remarks field for disposition instructions. This will allow action activities sufficient 

space to provide clear guidance and be more responsive to customer feedback concerning 

incomplete guidance in SDR replies.

(6) Establishing a new document number for ship-in-place returns eliminates 

delays when the customer recognizes the DSS constraint and must communicate this to the 

action activity. It will eliminate rework and manual research needed when the customers assign 

their own document number for the return without prior coordination with the action activity. 

This can result in the action activity not recognizing that the materiel associated with the SDR or 

PQDR has been returned and, in worst case scenario, has been receipted to the wrong.

b. Disadvantages: None identified.

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Phased and staggered 

implementation applies for discrete data fields associated with SDR directed returns and use of 

the cross-reference for the original document number in the PMR, materiel returns shipment 

status, and receipt. 

a. Procedures are effective upon publication of the approved change.

b. The target date for DAAS implementation of SDR data fields is no later than June

2018.

c. The target date for Component compliance for SDR transaction updates is no later 

than December 2018.

d. The date for full DLMS compliance is December 2019 including the cross-reference 

for the original document number in the PMR, materiel returns shipment status, and receipt.

8. ADDITIONAL FUNCTIONAL REQUIREMENTS: In addition to the return document 

number/suffix, materiel/documentation suspense date, and return-to/ship-to location, the DLMS 

842A/R SDR Reply IC includes two additional data elements associated with a directed return:

a. commercial carrier-assigned tracking number for materiel return (2/REF01/3700 Code 

08) and, 
Attachment, ADC 1249

Page 7

b. return goods bill of lading number (2/REF/01/3700 Code GD). 

Staffing Note: PDC 1249 requested Components provide implementation status for incoming or 

outgoing SDR replies and confirm return goods bill of lading number is still a valid option. 

EBSO did not receive any feedback. Therefore, these data elements are unchanged by this ADC 

and should be included with implementation, as applicable, for directed returns of SDR materiel.

9. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: DLA will derive a cost avoidance for additional 

man hours needed to track materiel and rework SDR guidance when the action activity does not 

provide a new document number up front. Corrective action for materiel receipted to the wrong 

owner due to a missing PMR under the new document number can be labor intensive. Receipt to 

the wrong owner causes inventory to be misstated and results in avoidable transactions for issue 

and receipt to the correct owner.

10. IMPACT:

a. New DLMS Data Elements: None identified.

b. Changes to DLMS Data Elements: Corrected spelling for discrepancy code values 

as shown above.

c. Automated Information Systems (AIS):

(1) Component SDR systems must be upgraded to send and/or receive (as 

applicable) data fields for suspense date, return-to/ship-to location, and return document 

number/suffix code. Include additional capability for replacement shipment document number 

suffix when implementing the replacement shipment document number as a discrete data field 

(Reference 3.d.).

(2) Components must upgrade systems to support use of a new document number 

for directed return of discrepant/deficient materiel located in a DLA Distribution Center, 

inclusive of internal processing to correlate the original and new document numbers and 

populating of the cross-reference document number in the PMR, shipment status materiel 

returns, and receipt transactions.

(3) Components systems that do not currently support directed return from the 

customer’s location on the original document number or a new document number assigned by 

the activity directing the return must take action to upgrade these systems to support standard 

procedures. Customers must have the capability to return discrepant/deficient materiel in 

accordance with the instructions provided.

(4) Components must review this change for potential impact to PQDR and TDR 

applications.

d. DAAS: Materiel returns data fields must be available for WebSDR-prepared SDR 

replies. Significant changes to DOD WebSDR include:

(1) Return Document Number Suffix: Add suffix code field associated with the 

return document number to the WebSDR internal flat file and translator.
Attachment, ADC 1249

Page 8

(2) Replacement Shipment Document Number Suffix: Add suffix code field 

associated with the replacement shipment document number to the WebSDR internal flat file and 

translator.

(3) Materiel/Documentation Return Suspense Date: Update logic. This field is 

defined in the internal flat file (as Materiel Return Suspense Date), but no mapping is currently 

configured in the translator. 

(4) Return-to/Ship-to Location: Add a data field with option to enter DoDAAC 

or CAGE. Provide a display option for the associated DoDAAC address from the DoD Activity 

Address Directory.

(5) Carrier-assigned Tracking Number: Add new data field to reply screen.

(6) In addition to reply screen data entry fields, suspense date, return-to/ship-to

location, and return document number/suffix, and carrier-assigned tracking number must display 

in SDR records, email, and management reports. For encrypted email SDRs, include the 

associated DoDAAC address. WebSDR must apply new edits for returns data fields based upon 

reply codes as described above.

e. Non-DLM 4000.25 Series Publications: Process revisions may require updates to 

internal operating procedures and other published SDR, PQDR, and TDR guidance.

11. PROPOSED DLMS CHANGE (PDC) 1249 STAFFING RESPONSE/COMMENT 

RESOLUTION:

Originator Response/Comment Disposition

1. Army Concur Noted.

2. Navy Concur

Preliminary Questions/Concerns:

1. Action Point assignment of an alternate doc# 

for the purpose of PMR/MRO matching is not a 

FIAR compliant process. For auditing purposes 

and credit processing, it is required that discrepant 

material returns be made under the same doc# as 

the original SDR. 

DLMS Program Office Response: Under normal 

circumstances, the directed return will be on the 

same document number as the original issue. The 

only time a new document number would be 

required is if the materiel is already located in a 

DLA Distribution Center and a “ship-in-place” 

MRO is required to change ownership (from the 

owning Service to the original source of supply). 

DSS cannot accept the PMR for the return action 

under the document number already associated 

with accountable materiel in storage. 

Recommendations:

1. The current system does not generate PMR 

(PDREP/eRMS) on discrepant returns. If PMR is 

Noted.
Attachment, ADC 1249

Page 9

Originator Response/Comment Disposition

required, then I would recommend conducting a 

systemic review to see if it is possible to generate 

PMR once a discrepant return is authorized. 

However, that return would still need to be made 

under the same doc# in order to comply with 

FIAR objectives.

DLMS Program Office Response: Concur with 

recommendations as applicable to all materiel 

directed for return from a location outside DLA 

Distribution. An exception is necessary for any 

materiel in a DLA Distribution Center that will be 

returned using a ship-in-place MRO. A PMR is 

required for these, but will use a different 

document number to avoid systemic confusion 

with the original DLA Distribution receipt.. 

3. Air Force Concur Noted.

4. Marine Corps Concur Noted.

5. DLA Concur with the following comment: This PDC 

will require a DSS system change; 

implementation date is yet to be determined.

Noted. 

Target dates are included in this ADC 

based on phased and staggered 

implementation. 

6. USTRANSCOM Abstain Noted.
Enclosure 1, ADC 1249

Page 1

Enclosure 1, Defense Logistics Manual (DLM) Chapter Revisions

Changes are identified by bold red italics and strike-though text. 

1. Revise DLM 4000.25, Defense Logistics Management Standards (DLMS), Volume 2, 

Chapter 11, Materiel Returns, Redistribution of Assets, Directed Discrepant/Deficient Materiel 

Returns, and Retrograde Returns. Excerpts are applicable to Formal Change 7.

“C11.20. DIRECTED DISCREPANT/DEFICIENT MATERIEL RETURNS AND 

RETROGRADE RETURNS

C11.20.1. General Requirements. The DoD supply chain may require the return of 

supply items for a variety of reasons, beyond the familiar one of excesses turned in for credit 

under the Materiel Returns Program (MRP) described earlier in this chapter. These can include 

the exchange of Depot Level Repairable (DLR) Class IX repair parts as required by Military 

Services’ Exchange Pricing programs, the retrograde of forward-positioned retail stock back to a 

home location, and discrepant/deficient materiel returns directed by Supply Discrepancy Reports 

(SDR), Product Quality Deficiency Report (PQDR), or Transportation Discrepancy Reports 

(TDR). In many some cases, logistics business rules require that the return must use the same 

document number as the related order/sale. While this reuse may be appropriate for some 

materiel held at the customer’s location, it is not feasible for all situations. When the materiel 

is already located in a DLA Distribution Center and no physical shipment is required to return 

the materiel to the original owner/manager, the current owner must not reuse (or suffix) the 

original document number for the Prepositioned Materiel Receipt (PMR) and Materiel 

Release Order (MRO) directing the return. The responsible action activity must assign an 

alternative document number when materiel is located in a DLA Distribution Center and the 

current owner must use a ship-in-place MRO to direct the return or when the submitters 

system prohibits reuse of document numbers. Returning activities may ask for an alternative 

document number if the action activity does not provide one. When using a new document 

number for the directed return of discrepant/deficient materiel, the responsible activity and the 

returning activity must retain an audit trail linking the old and new document number/suffix. 

The PMR, Materiel Returns Shipment Status, and Receipt provide transactional visibility of 

the original and new document numbers. The directed return must identify the return-to 

location by DoDAAC or CAGE (used for contractors when no DoDAAC is assigned). Clear 

text addresses may be included in addition to the DoDAAC and must be included for returns 

directed to a contractor identified by a CAGE only. The use of a combination of enhanced 

return transactions and the addition of specific indicators to other transactions will allow for the 

specific reporting of the transactions without confusion about the nature of the return and enable 

enhanced intransit visibility (ITV) of these returns. The procedures also support recent process 

improvement initiatives related to requirements for directed returns.

C11.20.2. Associated Transactions. There are three DLMS transactions that contain 

specific content that support the procedures for retrograde and directed discrepant/deficient 

returns. They are the DLMS 527D, Pre-Positioned Materiel Receipt, DLMS 856R, Materiel 

Returns Shipment Status, and DLMS 842A/R Standard Supply Discrepancy Report Reply. A 
Enclosure 1, ADC 1249

Page 2

fourth transaction, the DLMS 842P, Product Quality Deficiency Report (PQDR), is pending

implementation.1

C11.20.2.1. A Pre-Positioned Materiel Receipt, DLMS 527D/MILSTRAP DW_, is 

required for all returns to a DLA Distribution Center/Storage Activity. This requirement is 

applicable to DLMS-capable applications and MILSTRAP legacy applications. Detailed 

procedures associated with the PMR are listed in paragraph C11.20.3.

C11.20.2.2. A Materiel Returns Shipment Status, DLMS 856R with enhanced data 

content, is required from DLMS-capable customers to report directed returns to both the storage 

activity and the ICP/Integrated Materiel Manager (IMM) (or other Component designated 

activity). Detailed procedures associated with the materiel returns shipment status are listed in 

paragraph of C11.20.3.

C11.20.2.3. The materiel returns shipment status will include passive radio frequency 

identification (pRFID) when applicable., and for Under DoD IUID Supply Policy, the DLMS 

materiel returns shipment status identifying capital equipment or NSNs containing an IUID 

Indicator Y in FLIS, UII(s) and/or corresponding must include serial numbers and the 

corresponding UIIs (when UII is available) must be included in the DLMS 856R, indicating 

that DoD IUID Supply Policy compliance is required. 

C11.20.3. Detailed Procedures. The following paragraphs contain detailed procedures for 

return of supply items related to discrepant/deficient materiel as directed by an SDR, PQDR, or 

TDR response. This section also addresses retrograde of forward-positioned retail stock back to 

a home location.

C11.20.3.1. Supply Discrepancy Report (SDR) 

C11.20.3.1.1. When directing return of discrepant materiel, the SDR reply 

will include the number of days suspense date by which the customer must return the materiel to 

the designated location (using SDR Reply remarks pending implementation of the discrete data 

field). Expedited time standards under DoD or Component policy will be applied to wrong 

item/misdirected/misidentified classified/sensitive item returns. ICP/IMs may also apply 

expedited time standards to overage returns for back-ordered materiel not available within 

another customer’s required delivery date. The activity directing the return will identify the

return-to/ship-to location will be identified by DoDAAC or CAGE as described in paragraph 

C11.20.1. Clear text addresses may be included to facilitate the return since not all customers 

have ready access to an authoritative source for address information.

C11.20.3.1.2. The organization responsible for the SDR reply will take 

action to establish a due-in and generate a PMR transaction to the receiving activity. The PMR 

will include the return quantity and the appropriate supply condition code. Action to establish 

the due-in and create the PMR transaction will be accomplished under MILSTRAP/DLMS. The 

PMR will perpetuate the document number associated with the SDR, normally the document 

number of the original shipment, or the alternative document number assigned by the activity 

directing the return as described in paragraph C11.20.1. The DLMS PMR will include a 

 1 Refer to ADC 1007 series.
Enclosure 1, ADC 1249

Page 3

Return Type Code indicating the reason for return for which the PMR is established and will 

perpetuate the DoD WebSDR control number associated with the SDR.

(Intervening text not shown)

C11.20.3.2. Product Quality Discrepancy Report

C11.20.3.2.1. When directing return of deficient materiel/exhibits to storage 

activities, the PQDR reply will include the date by which the customer will return the materiel to 

the designated location. The responsible activity may apply an expedited time standard to Type I 

PQDRs or as appropriate. The ICP/IMM will identify the return-to location will be identified by 

DoDAAC or CAGE/clear text as described in paragraph C11.20.1. Clear text addresses may be 

included to facilitate the return since not all customers have ready access to an authoritative 

source for address information.

C11.20.3.2.2. When directing return of deficient materiel/PQDR exhibit, the 

ICP/IMM will establish a due-in and generate a PMR transaction to the receiving activity for the 

materiel return/exhibit quantity using SCC Q. Action to establish the due-in and create the PMR 

transaction will be accomplished under MILSTRAP/DLMS by the activity directing the return. 

The PMR will perpetuate the document number associated with the PQDR, normally the 

document number of the original shipment, or the alternative document number assigned by the 

activity directing the return as described in paragraph C11.20.1. If the submitter does not have 

the original shipment document number available, a submitter may use a constructed document 

number on the PQDR and this will be employed for the PMR, the return shipment, and future 

financial actions. If The DLMS PMR will include the Return Type Code indicating the reason 

for the PMR as return of quality deficient materiel and will perpetuate the PQDR report control 

number (RCN).

C11.20.3.3. Transportation Discrepancy Report

C11.20.3.3.1. When directing return of materiel associated with a TDR, the 

TDR reply will include the date by which the reporting activity will return the materiel to the 

designated location. The responsible activity may apply an expedited time standard as 

appropriate. The activity directing the return will identify the return-to location will be 

identified by DoDAAC or CAGE/clear text as described in paragraph C11.20.1. Clear text 

addresses may be included to facilitate the return since not all customers have ready access to an 

authoritative source for address information.

C11.20.3.3.2. When directing return of discrepant materiel, the ICP/IMM 

responsible for the TDR reply will take action to establish a due-in and generate a PMR 

transaction to the receiving activity for the quantity in the TDR reply. Action to establish the 

due-in and create the PMR transaction will be accomplished under MILSTRAP/DLMS. The 

PMR will perpetuate the return document number associated with the document number of the 

original shipment or as assigned by the ICP/IMM as described in paragraph C11.20.1. The 

DLMS PMR will include a Return Type Code indicating the reason for the PMR as return of 

transportation-related discrepant materiel and will perpetuate the control number associated with 

the TDR.”
Enclosure 1, ADC 1249

Page 4

2. Revise DLM 4000.25, Defense Logistics Management Standards, Volume 2, Chapter 17, 

Supply Discrepancy Reporting, as shown. Excerpts are applicable to Formal Change 8.

“C17.3.12.1.4.1. Customer Returns. When discrepant materiel is directed 

to be returned, the responsible activity will direct the customer to reship the materiel using the 

same document number under which the materiel was originally shipped. In many cases, 

logistics business rules require that the return shipment use the same document number as the 

related order/sale. While this reuse may be appropriate for some materiel held at the 

customer’s location, it is not feasible for all situations. When the materiel is already located in 

a DLA Distribution Center and no physical shipment is required to return the materiel to the 

original owner/manager, the current owner must not reuse (or suffix) the original document 

number for the Prepositioned Materiel Receipt (PMR) and Materiel Release Order (MRO) 

directing the return. The responsible action activity must assign an alternative document 

number when materiel is located in a DLA Distribution Center and the current owner must 

use a ship-in-place materiel release order to direct the return. Additionally, customers must 

use the reconsideration request to ask for an alternative document number due to system 

constraints prohibiting reuse of the original shipment document number. When using a new 

document number for the directed return of discrepant/deficient materiel, the owner/manager

and the returning activity must retain an audit trail linking the old and new document 

number/suffix (both document numbers will be included in the PMR, Materiel Returns 

Shipment Status, and Receipt transactions). The SDR reply will include the date by which the 

customer is requested to return the materiel to the designated location. The ICP will require 

expedited return where appropriate, such as FMS classified/sensitive item returns, and overage 

returns for back-ordered materiel not available within another customer’s required delivery date. 

Identify the return-to location will be identified by DoDAAC or CAGE (use for contractors 

when no DoDAAC is assigned). Clear text addresses may be included in addition to the coded 

address DoDAAC and must be included in the SDR Reply remarks text for returns directed to 

the contractor identified by a CAGE only.

1 since all customers may not have access to the 

authoritative address source. The SoS source of supply will provide reimbursement for packing, 

crating, handling, and transportation for directed returns under MILSBILLS procedures in DLM 

4000.25, Volume 4, Finance, procedures. and Use of the Defense Transportation System (DTS) 

for the return movement is encouraged except where use of a designated commercial carrier is 

more cost effective/efficient or transportation cost will be borne by another party (e.g., a vendor 

for return of nonconforming materiel). As an alternative to providing transportation 

reimbursement, the responsible action activity may provide the transportation account code 

(TAC) chargeable for the transportation services or direct use of a commercial carrier by 

providing the paying activity’s carriers account number or a pre-paid return shipping label. In 

those cases where an exhibit of the discrepant materiel is directed for return, the activity 

requesting this action will pay for exhibit shipment costs. Action activities will either furnish 

DD Form 1348-1A for materiel to be returned or provide comparable information to accomplish 

the return. A copy of the SDR and the shipment document will be included with returned 

materiel and annotated as an “SDR RETURN.” When discrepant materiel is directed for return 

to a contractor, a hard-copy SDR including disposition instructions will be included with the 

shipment. No statement adversely affecting the Government's claim will be shown on any 

documentation returned to the contractor. For non-Security Assistance customers, materiel not 

returned as directed within 90 calendar days (if CONUS) or 120 days (if OCONUS) of the SDR 

reply will be billed.”
Enclosure 1, ADC 1249

Page 5

3. Revise DLM 4000.25, Defense Logistics Management Standards, Volume 2, Chapter 24, 

Product Quality Deficiency Report Program, as shown. Excerpts are applicable to Formal 

Change 2.

“C24.5.2.1. Exhibit Request (Transaction Set Purpose Code 13). Used to request the 

exhibit and provide shipping information. Refer to paragraph C11.20 for specific guidance for 

directed deficient materiel returns including document number assignment and associated 

transactions for prepositioned materiel receipt and materiel returns shipment status.” 

1 Include return-to location, suspense date, return document number/suffix, and (when applicable) carrier 

tracking number in the SDR Reply remarks text pending full implementation of discrete transaction data fields. 

Refer to ADC 1249. 

 
Enclosure 2, ADC 1249

Page 1

Enclosure 2, DLMS Implementation Convention (IC) Updates

# Location Change Table for 

527D Prepositioned Materiel Receipt

Reason

1. DLMS 

Introductory 

Note

Add ADC 1249 to DLMS Introductory note on the cover page of the IC: 

- ADC 1249, Revised Procedures for Directed Return of Discrepant/

Deficient Materiel including New Document Number Assignment for

Return Shipment

To identify DLMS 

changes included in 

the DLMS.

2. 2/N901/90 Revise DLMS Note for existing Code CR:

CR Customer Reference Number

DLMS Note:

1. Use the Customer Reference Number to cross-reference to the 

requisition number under which the materiel was ordered, when it differs 

from the turn-in/return document number used with Code TN. This only is

applicable to directed return of discrepant/deficient materiel retrograde 

shipments occurring subsequent to a PQDR, and other types of retrograde 

shipments to replacement requisitioning.

2. DLMS enhancement. Refer to ADC 353A and ADC 1249.

Clarification and 

expanded use for all 

types of 

discrepant/deficient 

materiel returns.

Location Change Table for 

527R Receipt, Inquiry, Response and MRA

Reason

DLMS 

Introductory 

Note

Add ADC 1249 to DLMS Introductory note on the cover page of the IC: 

- ADC 1249, Revised Procedures for Directed Return of Discrepant/

Deficient Materiel including New Document Number Assignment for

Return Shipment

To identify DLMS 

changes included in 

the DLMS.

2/N901/90 Add Code CR and associated DLMS Note:

CR Customer Reference Number

DLMS Note:

1. Use in Receipt transactions to perpetuate the Customer Reference 

Number from the PMR to cross-reference to the requisition number under 

which the materiel was ordered, when it differs from the turn-in/return 

document number used with Code TN. This is applicable to directed return 

of discrepant/deficient materiel, and other types of retrograde shipments.

2. DLMS enhancement. Refer to ADC 1249.

Perpetuates crossreference document 

number for audit 

trail.

# Location Change Table for 

842A/R Standard Supply Discrepancy Report (SDR) Reply

Reason

1. DLMS 

Introductory 

Note

Add ADC 1249 to DLMS Introductory note on the cover page of the IC: 

- ADC 1249, Revised Procedures for Directed Return of Discrepant/ 

Deficient Materiel including New Document Number Assignment for 

Return Shipment

To identify DLMS 

changes included in 

the DLMS.
Enclosure 2, ADC 1249

Page 2

2. 2/DTM01/3600 Revise DLMS Note for existing Code 311:

311 Latest Receiving Date/Cutoff Date

DLMS Note:

1. This is the suspense date by which requested materiel or documentation 

must be received by this date.

2. Must use with SDR Reply Code 105, 106, 107, 108, 114, 115, and 117.

3. Use with ship-to location identified at 2/N101/4100. 

4. Pending full implementation of this data field under DLMS, the 

suspense date must also be identified in the SDR Reply remarks field to 

ensure that the receiving application has visibility of this information. 

Refer to ADC 1249.

Clarification of 

required use.

3. 2/NCA04/3400 Close NCA04 and delete associated notes:

380 Quantity 

DLMS Note:

1. Use to indicate the number of days when applicable to the reply code

2. Must use to indicate the number of days allowed for return of discrepant 

materiel when the SDR Reply Code 105, 106, 107, or 108 directs shipment 

of materiel to a specific location.

3. Pending full implementation of this data field under DLMS, the number 

of days must also be identified in the remarks field to ensure that the 

receiving application has visibility of this information. Refer to ADC 353.

Requirement for 

suspense date 

consolidated under 

Code 311 Latest 

Receiving 

Date/Cutoff Date.

4. 2/NCA05/3400

NCA05-01

Close NCA05 and NCA05-01:

DA Days

Same as above.

5. 2/REF01/3700 Revise DLMS Note for existing Code 08 and QJ:

08 Carrier Assigned Package Identification Number

DLMS Note:

1. Use to identify the commercial carrier-assigned tracking number for 

materiel return.

2. For 08: WebSDR field length = 17

QJ Return Material Authorization Number

DLMS Note:

1. Used to identify the document number applicable to materiel return. 

Must use return document number when SDR Reply Code 105 or 107 

applies.

2. Return on original shipment document number preferred, but may not 

be possible due to system constraints. Must use alternate document 

number for materiel already in a DLA Distribution Center necessitating 

ship-in-place processing for return.

3. For QJ: WebSDR field length = 14

Clarification of 

required use.

6. 2REF04/3700

REF04-01

Open REF04 and REF04-01 and add Code W8:

W8 Suffix

DLMS Note: When citing a return document number (Code QJ) or a 

replacement shipment document number (Code QE), use to identify the 

document number suffix when applicable.

Allows for 

identification of a 

document number 

suffix should one 

be required.

7. 2/N101/4100 Revise DLMS Note for existing Code ST: Clarification.
Enclosure 2, ADC 1249

Page 3

ST Ship To

DLMS Note:

1. Use to identify the location to which materiel must be shipped/returned. 

Location must be identified by DoDAAC or CAGE (for contractors with no 

assigned DoDAAC). Text address may be included in SDR Reply remarks 

text for DoD activities and must be included for contractors identified by 

CAGE. Must include location when SDR Reply Code 105, 106, 107, or

108 applies.

2. Pending full implementation of discrete data elements for the ship-to, the 

DoDAAC or CAGE, and the clear-text activity/address must be repeated in 

the SDR Reply remarks block to ensure assure that all users will receive the 

specified location. 

# Location Change Table for 

856R Shipment Status Materiel Returns (Version 4030)

Reason

1. DLMS 

Introductory 

Note

Add ADC 1249 to DLMS Introductory note on the cover page of the IC: 

- ADC 1249, Revised Procedures for Directed Return of Discrepant/ 

Deficient Materiel including New Document Number Assignment for 

Return Shipment

To identify DLMS 

changes included in 

the DLMS.

2. 2/REF01/1500 Revise DLMS Note for existing Code CR:

CR Customer Reference Number

DLMS Note:

1. Use the Customer Reference Number to cross-reference to the 

requisition number under which the materiel was ordered, when it differs 

from the turn-in/return document number used with Code TN. This only is

applicable to directed return of discrepant/deficient materiel retrograde 

shipments occurring subsequent to a PQDR, and other types of retrograde 

shipments to replacement requisitioning.

2. Authorized DLMS enhancement. Refer to ADC 353A and ADC 1249.

Clarification and 

expanded use for all 

types of 

discrepant/deficient 

materiel returns.